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1. If you were in the business of selling books, how would you differentiate your business from other similar businesses? Discuss the 4 ways - location, service, physical characteristics and product image.
2. Differentiate between a horizontal merger and a vertical merger. How would you classify the merger between Facebook and lnstagram? Explain the reason for oligopolies such as Facebook, to undertake such strategy.
3. What are the sources of barriers to entry in Monopoly? In each case, explain how each of these barriers protects the established producer.
What is the greatest advantage to business owners of a corporation vs. other business entities? Which business entities require permission from the state to become created? What is the basic governing document of the modern corporation?
In economy B, the same workers remain unemployed for extremely long periods of time. Which economy will have a bigger problem with unemployment?
Jimmy’s preferences can be represented by the following utility function U = 2x + y. WealsohavePx =3,Py =3andW=100. What is Jimmy’s optimal consumption bundle? Calculate Jimmy’s income elasticity of demand for good x.
Suppose a country produces two final goods, Pizzas (Ps) and Tacos (Ts). In Year 1 it produced 10 Ps at a price of $5 each and 50 Ts at a price of $1 each. In Year 2 it produced 15 Ps at a price of $6 and 50 Ts at a price of $2. If Year 1 is the base ..
Define three types of elasticity of demand. Indicate how you would use information from recent research paid by your company that the own price elasticity of your product is -1.2 and not -0.8 as previously thought.
a. Calculate the indirect utility function for this Cobb-Douglas case. b. Calculate the expenditure function for this case.
Evaluate whether each of the following statements is true or false. Explain your answer and provide supporting rationale. The short-run aggregate supply (SAS) curve slopes upward because households spend more as their incomes increase. The long-run a..
In a market economy only those consumers who are willing and able to pay for pencils get pencils, is this fair? What about the market for health care?
Your firm faces considerable revenue uncertainty because you have to negotiate contracts with several customers. You forecast a 20 percent chance that your revenues will be $200,000, a 30 percent chance that your revenues will be $300,000, and a 50 p..
Right Bank offers EAR loans of 9.17% and requires a monthly payment on all loans.
You can afford to make monthly payments of a certain amount for three years, and you want to know how much you can borrow based on this payment amount.
One year of life is then worth a little less than $67,000. Actually, if you are talking of Quality adjusted life year, your last calendar year might be worth considerably less than one quality adjusted life year ignoring that. They can’t spend more t..
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